Expect AI Gold Rush To Continue in 2025

With inflation diminishing and interest rates declining, attractive opportunities—as well as risky ones—are likely to present themselves to investors in the new year. 

Artificial intelligence, or AI, has garnered the most attention in recent years with massive spending by the leading technology companies. The Economist magazine predicts the gold rush will continue as spending on information technologies rises to $3.6 trillion in 2025, with about 30% of large American firms each investing $10 million or more in AI, up from 16% in 2024.

There are good reasons for all this spending. Something extraordinary is happening. Innovation aided by AI is accelerating at remarkable speeds, potentially unlocking solutions to problems that seemed unsolvable just a few years ago. Biosciences, medical diagnostics, cybersecurity, national security and defense technology, quantum computing and advanced energy are notable areas that are receiving increased venture attention because of AI.

Here are seven promising companies to watch among those sectors:

Biosciences – A-Alpha Bio rapidly measures protein-protein interactions via machine learning, enabling an acceleration of therapeutic discovery. Phantom Neuro applies machine learning to wirelessly transmit thought into movement, developing advanced prosthetics, and potentially changing amputees’ lives.

Medical diagnostics – Cytovale leverages computer detection technology to help save lives with earlier sepsis diagnoses.

Cybersecurity – Using generative AI, Cyberhaven safeguards the flow of data in the digital economy, protecting a company’s most important information. System Two Security uses AI to accelerate cyber-threat detection by up to 10-fold, allowing a company’s security team more time to stop or minimize attacks.

National security and defense technology – CAPE provides a privacy-first virtual mobile network, delivering communications security and resilience. The company is rolling out its network in Guam for the U.S. Navy. Hidden Level develops advanced counter-drone technology and has received $10 million in funding from the U.S. Department of Defense.